Cost analysis and the HSA: a framework

A high priority in the mandate established for health systems agencies is the containment of health care costs. In this paper, a suggested framework for the analysis of costs in a health service area is presented. The health service area cost profile is derived by classifying data in nine categories of variables. Cost analysis involves the identification of relationships among measures in different profile categories. A general process for cost analysis is described. The process includes the comparative analyses of the health service area cost profile, historical and projected cost profiles, and cost profiles for sub-areas and areas outside the health service area.